By Michael Calia
Ally Financial Inc., the former finance arm of General Motors
Co., said its profit rose 70% in the fourth quarter, the firm's
first earnings release since it exited the U.S. government's
financial rescue plan last month.
The company's earnings matched analysts' expectations.
The U.S. Treasury sold its remaining stake in Ally last month,
completing a process that saw the firm deliver mostly profitable
quarters since its bailout in 2009. The company also shed its
subprime-mortgage unit, which was the primary source of its
financial problems.
In its most recent quarter, the company's core auto-lending
business, which has been supported by a recent strong demand for
cars and trucks in the recovering U.S. economy, posted pretax
income of $396 million, an increase of 45% from a year ago.
Ally also said Thursday that it plans to continue the
diversification of its dealer financial services business.
Consumer auto loan originations rose 10% to $9 billion.
Overall, Ally posted earnings of $177 million, up from $104
million a year earlier. On a per-share basis, earnings were 23
cents, compared with a loss of 78 cents a year earlier. Excluding
certain items, earnings were 40 cents a share.
Analysts had expected earnings of 40 cents a share, according to
Thomson Reuters.
Ally's bank business had $48 billion in retail deposits as of
Dec. 31, compared with the $46.7 billion in deposits it had at the
end of the previous quarter.
Write to Michael Calia at michael.calia@wsj.com
Access Investor Kit for Ally Financial, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US02005N1000
Access Investor Kit for General Motors Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US37045V1008
Subscribe to WSJ: http://online.wsj.com?mod=djnwires